Second tranche of Bharat-22 ETF to open to retail investors on 20 June
The second tranche includes Bharat-22 ETF stocks such as ONGC, Indian Oil, SBI, Coal India, Nalco and GAIL India
New Delhi: The finance ministry will launch the second tranche of Bharat-22 ETF on 19 June which will help the government raise up to Rs8,400 crore from the markets. The issue will open for anchor investors on 19 June and for other institutional and retail investors the next day. The exchange traded fund (ETF) follow-on offer will remain open till 22 June. The investors would get a 2.5% discount over the Bharat-22 price.
“The government is aiming at mopping up Rs 6,000 crore, with a green-shoe option to retain another Rs 2,400 crore from the Bharat-22 ETF follow on offer to be launched on 19 June,” a finance ministry official said.
The second part of Bharat-22 ETF would also help the government in meeting the minimum public holding norm in PSUs like Coal India Ltd.
The government had in November last year launched Bharat-22 ETF comprising shares of 22 companies, including public sector undertakings (PSUs), public sector banks, ITC Ltd, Axis Bank Ltd and Larsen and Toubro Ltd. The fund had garnered bids to the tune of Rs32,000 crore, although the government retained only Rs14,500 crore.
The state-owned companies or PSUs that are part of the new Bharat-22 ETF stock include Oil and Natural Gas Corp. Ltd (ONGC), Indian Oil Ltd, State Bank of India, Coal India and Nalco.
The other PSUs on the list are Bharat Electronics, Engineers India, NBCC, NTPC, NHPC, SJVNL, GAIL, PGCIL and NLC India. Only three public sector banks—SBI, Indian Bank and Bank of Baroda—figure in the Bharat-22 index.
The government plans to raise Rs80,000 crore in the current fiscal from disinvestment, lower than over Rs1 trillion raised last year.
On Tuesday, the government had through a public notice said it will divest 12% stake in railway consultancy firm RITES through an IPO which will be launched on 20 June.
Prior to the launch of Bharat-22 ETF which has a diversified portfolio, the government had floated the CPSE ETF comprising stocks of 10 blue-chip stocks—ONGC, Coal India, Indian Oil, GAIL (India) Ltd, Oil India, PFC, Bharat Electronics, REC, Engineers India and Container Corporation of India.
Through the CPSE ETF, the government had raised Rs 11,500 crore in three tranches—Rs 3,000 crore from the first tranche in March 2014, Rs 6,000 crore from the second tranche in January 2017 and Rs 2,500 crore from the third tranche in March 2017.
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